Chemicals Group AkzoNobel is to cut the link between the company’s position in the Dow Jones sustainability index and executive bonuses, CEO Hans Wijers says in an interview with the Financieele Dagblad.
By doing this, the company hopes to prevent bonuses becoming ‘stakeholder issues’, Wijers told the paper. ‘Bonuses should be linked to measurable performance.’
AkzoNobel has used the company’s ranking to determine the size of 50% of executive share bonuses since 2009. The company has been in the top three for several years.
The change has to be approved by shareholders at the company´s April 27 AGM.
The paper said in December that oil giant Shell is also considering breaking the link with the sustainability index in determining bonuses. Last year, the company was removed from the index because of the number of oil leaks in Nigeria.
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